The US CPI, an economic indicator, significantly impacts US Dollar dynamics and may predict future asset prices like Bitcoin and altcoins.The US Bureau of Labor Statistics reported 3.2% annual inflation in July, slightly below market forecasts, causing uncertainty on the bitcoin price. Bitcoin traders’ exposure to risky assets may increase due to the Federal Reserve’s hawkish stance, potentially adding downward volatility to risky assets like Bitcoin.

Increased social activity in Bitcoin over the past 30 days may drive traders to buy at low prices and await macroeconomic recovery.
The CPI reading in July shows the Federal Reserve effectively lowered liquidity, affecting Bitcoin’s price below $30,000, indicating a successful inflation indicator.

At $29,530, $29,349, and $27,177, respectively, the price of bitcoin is currently above its three long-term Exponential Moving Averages (EMAs), 10, 50, and 200-day.
Bitcoin reached record highs in 2021 due to inflation, but the Fed’s monetary policy growth led to a $65,000 price surge, showcasing its resilience.

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